In Forex trading, understanding the costs involved is essential for managing your profitability. On JustMarkets, two main fees are spreads and commissions that affect both entry and exit levels. In this piece, you will learn about spreads & commissions on JustMarkets; how they impact your trading, and your outcomes.
What Are Spreads?
Spreads represent the difference between the bid price (the price you can sell a currency for) and the ask price (the price you can buy it for). This is perhaps the cost of getting into the trade, and this is how many brokers including JustMarkets earn their revenues. Our Trader Support Hub contains a range of additional resources for traders more focused on these costs and related trading aspects, including information about the spreads.
Fixed Spreads
These remain constant regardless of market conditions, making them predictable.
Variable Spreads
These differ from market trends in volatility, liquidity, and other influences from the state of the economy. Fixed spreads are less frequent on JustMarkets and typically change their value about outside conditions, expanding or shrinking.
Spread Structures on JustMarkets
JustMarkets offers various account types with unique spread structures to suit different trading needs:
Standard and Pro Accounts
Traditionally have floating spreads that depend on the prevailing market price. In a normal situation, these spreads are lower but can expand in the days of enhanced fluctuations in the market price.
Raw Spread Account
It is intended for those traders who believe that even one pip is significant, with the spreads starting from 0 pips. While this account type is perfect for short-term highly active trading it does come with an additional commission per lot.
What Are Commissions?
Commission is a different type of fee that brokers charge on per per-trade basis or per lot. While the spreads are given within the price of the pair the commissions are added in a straightforward fee way. On JustMarkets, commissions are mostly seen in Raw Spread accounts that let traders have very tight spreads while paying a commission per trade. This structure can be favorable to scalpers and day traders who depend on low spreads to reap from regular, small value fluctuations.
How Spreads and Commissions Affect Varying Trading Strategies
The combination of spreads and commissions on JustMarkets influences trading costs and profitability:
For Scalpers and Day Traders
It’s not uncommon for these traders to make multiple trades within a short space of time and inversely, their major concern is usually the spread potentially even ignoring the commission that is accrued. The Raw Spread account on JustMarkets is perfect for this strategy because its main focus is to minimize the amount of spread that you have to pay, meaning you can make profits from the slightest changes in price on the selected asset without losing them to high spreads.
For Swing and Position Traders
Long term speculators that use positions might find fixed or low variable spreads suitable since they don’t want to incur extra commission charges. This is because JustMarkets are available with Standard or Pro accounts offering freedom and sustainability, as they only have no-commission fixed spread. Such accounts are of advantage to long-term traders since they deal with big swings in price over time rather than slight changes in the spread.
Conclusion
Knowledge of spread and commission on JustMarkets helps to predict trading and adjust it for the minimum cost of transactions. Therefore, the decision of the account type the client wants to open depending on his or her trading preferences, as well as awareness of conditions on the market, and application of proper methods affecting the prices, will lead to improved profitability and trading experience. There is a concept that says every JustMarkets account type is aimed at various needs; this helps traders to concentrate on the opening of the desired position with accuracy and without the possibility of loss.